CEO Pay

April 22, 1996

Critics charge that top executives at large firms are making too much money. Others contend that executive pay is not a public issue, but a matter to be decided by shareholders, who, after all, own the companies that pay the executives. Nevertheless, such questions have been much in the news recently, and recent studies show that CEO pay is being more tightly tied to performance.

In 1992, the Securities and Exchange Commission revised its rules on the disclosure of executive compensation.